Why 45 days
original documents should be handed over in a weeks time
45 days waiting period is risky
ask NBFC to give original documents within a week or so
Buying property with OTS
I have identified a property on which a seller has defaulted to NBFC and is an NPA. Seller wants to sell property directly before it gets repossesed and goes into auction. NBFC is ready to do OTS. I plan to take a home loan from a big private bank and they are fine with giving loan on NPA property. All parties are now aligned. My concern is after my sale deed is registered and the NBFC gets their DD, they are saying they will provide original documents in 45 days. My bank will release DD to seller for remaining amount(above OTS) after these old original documents are recieved by them. Seller wants to give possession after they recieve their DD (which is about 5% of total consideration) In this case, do I have any risk in buying this property and in getting possession after 45 days after registration. I am getting title search and one week public notice before buying it.
Asked 2 years ago in Property Law
Religion: Hindu
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15 Answers
- After sale deed is registered, DD from bank of purchaser will be handed over to (fare enough).
- Property documents will be furnished to buyer with 45 days, amount of OTS will be released only after documents are received by buyer’s bank. (fare enough).
- Possession of property will be given 45 days after registration. (not fare).
- Registration and putting purchaser in possession of property are contemporaneous transaction.
Advice: insists on simultaneous possession of property more so when document will be furnished with 45 days.
First you ascertain the title to the seller and other aspects pertaining to the property including the details of mortgage loan.
Then you can enter into a sale agreement with the seller to the effect and terms that have been agreed between you both.
After that you can proceed with the proposed purchase as per the program that you have mentioned here.
Yes it's a risk if party doesn't give you possession. It's better to take possession on date of payment
There is no risk if you make proper sale deed draft. No matter whether the property is registered and you will get possession after 45 days of registration.
Original documents needs to be handed over within seven days or maximum fifteen days
Forty five days waiting time is quite absurd.
Once the title search and public notice is done tell NBFC to release the original documents or you may cancel the registration
Dear Client,
check the status of the property and get the paper work done strongly with out any error. try to know the reason for the delay.
- As per banking rule, the said private bank who is going to sanction loan to you , will not handover the consideration amount to the seller without getting the authority letter from that seller and the NBFC .
- Further, except the said bank , you have no right to collect the sale deed
- Hence, you can inform the said bank to collect the sale deed directly from the office of the registrar after taking the authority letter from the seller and the NBFC, and further to receive the previous originals of the property within a week time.
1. The property is a mortgaged property which can not be sold without the written consent of the mortgagee NBFC.
2. The standard procedure in such cases is that a tripartite agreement is signed by the Borrower, The NBHC & also the prospective buyer detailing all the terms of the deal in the matter.
3. If such tripartite agreement is signed, the mortgagee NHBC can bring the original documents to the office of the Registrar and your bank can bring the DDs and the documents can be handed over to you while registering the sale deed and your bank can collect the same as mortgaged papers. The Seller can also get the extra amount of the OTC amount.
4. Alternatively, your bank can write to the said NHBC to send them the mortgaged papers by send ing the OTS amount and can pay the balance 5% to the seller after he issues a possession letter to you.
Since the seller is now bankrupt & this property which I am looking at buying is mortgaged to an NBFC & being offered with an OTS with NBFC in loop:- There is a risk that this seller may have taken additional loans from money lenders. To avoid any nuisance litigation in future - Is Public Notice (15 Days), Title Search & proper sale deed registration enough or anything else can be done to minimize this? And once these steps are done, How much is rick of any future litigation?
Asked 2 years ago
Indemnity bond also needed
You obtain a proper legal opinion from an experienced lawyer in the local by producing the relevant documents pertaining to the property including the details of current mortgage loan.
You may proceed only if recommended.
The fifteen days notice through a local newspaper will not come to your rescue in case of a litigation in future involving this property.
You can obtain lawyer written opinion that tile is clear and marketable
issue public notice that you are purchasing property and to submit their objections within stipulated period
you can take our search in local clusters to find out whether any case is pending against seller
ask seller to execute indemnity bond to indemnify you in case third party claims are made
- Yes, you can publish a notice in the newspaper after mentioning that you are going to purchase a property , and if any one having any type of objection or claim then they can approach you within a period of 15 days from the date of notice.
- Further, you can take an Indemnity bound from the seller.
Dear Client,
public notice, title search and proper sale deed registration would be enough to avoid the litigation.
1. The property is mortgaged with the said NBFC only since the original document si lyin with them.
2. The bankrupt seller might have taken further unsecured loan but it should not effect your buying the said property after registering the sale deed and after collecting the original title deed of the said property.